Texas sues Google and Facebook over monopolistic deal

The New York Times claimed to have obtained a document from an antitrust lawsuit in Texas; It details in detail a deal concluded between Facebook and Google dating back to 2018, which provides for reducing the intensity of competition between it in the advertising market, with the exchange of benefits between the two parties.

According to the report of the report on the agreement “Jedi Blue”, Google has given preference to the social network to head the list of “Header Bidding” ad spaces targeted by the sites to obtain a price offer from several advertising trading platforms simultaneously, in return Facebook supports Google’s approach to offer the open price. Google’s Open Bidding ”to sell these ads.

With this process, Google has given the network the privilege to provide a greater number of ads bids, with direct billing processes between them and the sites hosting these ads in light of Google’s help in understanding the target audience of the ad.

In one of the terms of the agreement that came in the document, Facebook says that it will bid for 90% of ad auctions bids in the event that the target users are identified, and it has promised to spend a minimum of $ 500 million annually, demanding Google after using the bid information to characterize the auctions in its favor.

Based on this agreement, the US state court accused Google of favoring Facebook and providing a guarantee that it would win a number of advertising deals at the expense of the rest of the competitors in the market.

While the two companies responded, rejecting the description of their agreement as a monopoly, as the official spokesperson of the social network claimed that this deal increases the spirit of competition in advertising offers that the arguments presented to deny that are unfounded.

Google also expressed its rejection of the Texas lawsuit against it; Where the company spokesman said that the lawsuit distorted the deal and did not represent the other advertising aspects of the real picture.

In all cases, if the two companies reject the lawsuit or express their displeasure, the final decision remains in the corridors of the court. Which will take into account the integrity of both parties in fair competition! Especially since the first is a search giant and the other is the largest social network.


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